A buyer enters into an installment land contract in Pennsylvania to purchase a rural property. After making payments for 3 years, the buyer defaults. Under PA law, what protections does the buyer have regarding the payments already made?
Correct Answer
C) Pennsylvania courts may apply equitable principles to prevent unjust enrichment of the seller
Pennsylvania courts have applied equitable principles in installment land contract defaults to prevent unjust enrichment. Where the buyer has made substantial payments, courts may require the seller to follow foreclosure-like procedures or provide restitution rather than allowing simple forfeiture of all payments.
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